Kaye:  “I hope people have been enjoying their holidays, but people need to understand that the guys who have been orchestrating the raids in gold and silver haven’t stopped.  We have continued to see the looting of GLD and some of the other exchange-traded funds....

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“This is important because while the mainstream media continues to say this is a function of a bear market, it’s really not a characteristic of a bear market.  It has nothing to do with it.  We have seen the Spyder GLD lose 41% of its physical gold, while SLV has lost virtually no inventory.

People have to remember that silver has lost way more on a percentage basis than gold.  In a period of roughly 32 months the price of silver has dropped from $50 to just under $20, and yet SLV has not been losing much in the way of physical silver.  This is almost beyond comprehension.  The mainstream media will not address this fact because it exposes the fraud and the manipulation.

I stand by what I’ve been saying all along which is this takedown has been totally organized and orchestrated.  But the cartel’s options are becoming more limited now that 41% of GLD’s physical inventory has been shipped to the strong hands in Asia.  My guess is we are now looking at mid-to-late January of 2014 as a probable and absolute bottom, after which it is going to be difficult for sidelined investors to gain a position because gold and silver will then move very, very quickly in the other direction.  That is why most people are going to miss this move, Eric.

While all of the Western media is filled with anti-gold stories, China continues to buy virtually all of the available physical gold at these levels, and will continue to do so on any further price declines.  Also, the flow of gold into India has continued because of increased smuggling.  But none of the smuggled gold is being reported in the official import numbers.

One of the primary reasons this gold flowing into India is not being reported is because the politicians themselves control the smuggling rings.  The reason India has such a large current account deficit and a loss of confidence in the Indian currency is because of the bad government policies.  The people of India see this and so they seek refuge, as they always have throughout history, in gold. 

The politicians appeared to want to put a stop to that.  They blamed the crave for gold in India which has been eternal, for a current account problem that is structural -- that is basically temporary.  As you know, Eric, I have extremely good sources and contacts in India because we’ve done business there for years.  If our sources are correct, this year the gold imports into India are very close to 1,200 tons, which is a staggering figure.

On top of that, we have the Chinese importing a mind-boggling 2,200 tons of gold for 2013.  That figure actually totals the entire global mine supply for all of 2013 outside of China.


Remember, China does not export any of its mine supply.  If we then add the Chinese import figures with the Indian import figures, including illegal smuggling, quite frankly those numbers are shocking.  You also have to remember that we have enormous demand from other countries around the world such as Russia, Brazil, just to name two. 

But the point I am making here is that these numbers for physical gold demand around the world simply don’t add up without major official sources such as Western central banks, the BIS (Bank for International Settlements), the Fed, and the Bank of England supplying gold from their own vaults.  Otherwise you just can’t square these numbers.  Any child with a pencil who can do arithmetic would not be able to sum those figures.  So these numbers just don’t add up, and this makes me very optimistic as I look out into 2014 and beyond. 

But I have to caution KWN readers around the world that the cartel wants to take the gold price down even further in the short-term.  We are talking here about the central planners and the bullion banks, who are their agents in the gold market.  Remember, central banks don’t care about profit and loss because it’s not their money anyway.  But bullion banks do and one of the ways they recapitalize themselves is through these types of schemes.  And when they have the backing, as they do in this case, of the major central banks, then this is a great game for them.

So the bullion banks think to themselves, ‘Why not take gold down to some unfathomable level like $1,050, and then take it back up?  Who cares if the hedge fund shorts get screwed on the slingshot in gold back to the upside?’  In other words, why not get the shorts in the market even more excited by moving the market in their direction (lower), and then slingshot the gold market back in the other direction and even higher to force them to cover their shorts at a loss?

So my concern is that I think they (the bullion banks) will benefit from putting on even more long positions on another takedown.  But the paper game will come to an end when gold can’t physically be delivered, and I think we are not far from that point.  We already know that the movements in the gold market are orchestrated and are also part of recapitalizing the bullion banks, so the question is, ‘Are the bullion banks positioned to gain the maximum benefit from the upside move in gold?’

So I think 2014 is set up to be an extremely exciting year, but I believe we will see gold go lower before it goes higher because of the increased looting of physical gold from GLD that we are now seeing.  Regardless, 2014 is going to be an extremely good year for the precious metals.  I believe we could easily see new highs in nominal terms in both gold and silver.  We may see $2,000 to $2,500 in gold, and $50 to $60 in silver, maybe even higher.  The bottom line is that 2014 will be the year that the cartel gets broken.”

King World News note - The following email was sent to us from a KWN reader out of the UK on December 26th:

Eric might be interested to know that the armored trucks were rolling in London today despite it being Boxing Day.  I lived in London for six years and I'm telling you, the Brits take their holidays seriously ... very seriously ... especially Christmas and Boxing Day. They wouldn't run off with this much physical at this time in secret unless they were desperate ... real desperate.

The fact that the powers that be were moving this metal “in secret” on “Boxing Day” is absolutely fascinating.  It will be interesting to see if this unprecedented movement of metal took place ahead of yet another orchestrated smash in the gold price.  We will know the answer in a couple of weeks.

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